scholarly journals EARNINGS MANAGEMENT AND FUTURE EARNINGS

2019 ◽  
Vol 16 (2) ◽  
pp. 141-164
Author(s):  
Alex Johanes Simamora ◽  
Keyword(s):  
Earnings Management ◽  
Market Share ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Financial Health ◽  
Future Earnings ◽  
Auditor Quality ◽  
Effect Regression ◽  
Negative Effect ◽  
The Cost

Abstract This research is aimed to examine the moderating effect of the cost of earnings management on the relationship between earnings management and future earnings. Research samples are manufacture companies listed in Indonesia Stock Exchange 2013-2015. The cost of accruals earnings management is auditor quality, while the costs of real earnings management are the market share and financial health. Based on the fixed effect regression test, auditor quality strengthens the positive effect of accruals earnings management on future performance, while market share and financial health weaken the negative effect of real earnings management on future earnings. It indicates that in the context of efficient contracting, high quality auditor provide better signal for earnings prediction compared to the low quality auditor. In addition, higher market share and higher financial health limit opportunistic real earnings management to reduce future earnings.

scholarly journals Effect of earnings management on earnings predictability in information signaling perspective

2018 ◽  
Vol 22 (2) ◽  
pp. 173
Author(s):  
Alex Johanes Simamora
Keyword(s):  
Earnings Management ◽  
Market Share ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Research Use ◽  
Financial Health ◽  
Discretionary Accrual ◽  
Information Signaling ◽  
Earnings Predictability ◽  
Research Period

This research is aimed to examine (1) effect of discretionary and innate accrual on earnings predictability (2) effect of market share and financial health on relationship between real earnings management and earnings predictability. This research use manufacture firms listed in Indonesian Stock Exchange 2003-2015 as research sample, with 2013-2014 as research period. Accrual earnings management is measured by discretionary and innate abnormal accrual. Real earnings management is measured by aggregate of abnormal cash flow of operation, abnormal production, abnormal discretionary expenses. As expected, discretionary accrual as opportunist act does not support earnings predictability, while innate accrual as information signaling of business model improves earnings predictability. Real earnings management as information signaling of market share and financial health improves earnings predictability as well. In general, earnings management as information signaling is more likely to communicate condition of firm and leads to informativeness of earnings.

scholarly journals IFRS ADOPTION AND EARNINGS MANAGEMENT PRACTICE: EVIDENCE FROM INDONESIA COMPANIES

2019 ◽  
Vol 7 (2) ◽  
pp. 229-239
Author(s):  
Vina Kholisa Dinuka
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Stock Exchange ◽  
Management Practice ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
Discretionary Accrual ◽  
Ifrs Adoption ◽  
Negative Effect ◽  
Ifrs Implementation

The purpose of this study is to verify IFRS contribution by examining the presence of Accrual Earnings Management (AEM) and Real Earnings Management (REM) in the period pre- and post- IFRS implementation in manufacturing companies in Indonesia. AEM is measured by absolute value of discretionary accrual, while REM is proxied by three measurements of REM, they are abnormal cash flow operation, abnormal production and abnormal discretionary expenses. The sample is taken from Indonesia stock exchange in 2009-2011 and 2013-2015. 2012 is Indonesia adoption period and it is excluded from the sample, because it is considerated as transitory year. This study uses regression analysis and Paired t-test to compare the presence of AEM and REM preceding and following IFRS implementation. The findings reveal that IFRS adoption has significantly negative effect towards AEM and REM. It indicates that the following IFRS implementation, AEM and REM are decrease. Therefore, IFRS is able to reduce earnings management practices in manufacturing companies in Indonesia both for AEM and REM.

scholarly journals Reputasi perusahaan keluarga: Accrual dan real earnings management

2021 ◽  
Vol 10 (2) ◽  
pp. 265
Author(s):  
William Sebastian Tanusaputra ◽  
Rizky Eriandani
Keyword(s):  
Logistic Regression ◽  
Earnings Management ◽  
Family Firms ◽  
Stock Exchange ◽  
Corporate Image ◽  
Real Earnings Management ◽  
Financial Reports ◽  
The Family ◽  
Company Reputation ◽  
Negative Effect

This study examined the effect of earnings management on reputation in family firms listed on the Indonesia Stock Exchange (ISE). The data were collected from audited financial reports of companies listed on the Indonesia Stock Exchange for 2017-2019. The data were slected by using a purposive sampling towards 264 companies. The data of company reputation comes from the corporate image reward website, and they were analyzed using logistic regression. The results showed there is no effect of accrual earnings management (AEM) on the family firms’ reputation. On the contrary, real earnings management (REM) has a significant negative effect on family firms. This result implies that earnings manipulation by adjusting the company’s operations will result in a bad reputation.

scholarly journals Accrual Earnings Management and Real Earnings Management: Increase or Destroy Firm Value?

2019 ◽  
Vol 6 (2) ◽  
pp. 8 ◽  
Author(s):  
I Putu Edi Darmawan ◽  
Sutrisno T ◽  
Endang Mardiati
Keyword(s):  
Linear Regression ◽  
Earnings Management ◽  
Multiple Linear Regression ◽  
Firm Value ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Real Earnings Management ◽  
Analysis Tool ◽  
Negative Effect

This study aims to investigate empirically the effect of accrual earnings management and real earnings management on firm value. The analysis technique used is multiple linear regression analysis. The research samples were manufacturing firms listed on the Indonesia Stock Exchange during the period of 2013 to 2017. The analysis tool used is Multiple Linear Regression. The test results showed that accrual earnings management measured by discretionary accruals did not affect on value of the firm. Real earnings management was found to have a negative effect on firm value.

Crime rate, real earnings management and managerial ability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alex Johanes Simamora
Keyword(s):  
Earnings Management ◽  
Crime Rate ◽  
Stock Exchange ◽  
Efficiency Score ◽  
Real Earnings Management ◽  
Data Envelopment ◽  
Managerial Ability ◽  
Content Type ◽  
Effect Regression ◽  
Lower Crime Rate

Purpose This paper aims to examine the effect of managerial ability (MA) on real earnings management and the effect of real earnings management by higher ability managers on future profitability, at a different level of the crime rate. Design/methodology/approach The research sample includes 864 manufacturing firms-years listed on the Indonesian Stock Exchange. MA uses an efficiency score by data envelopment analysis. Real earnings management is measured by abnormal activities. The crime rate is measured by logarithm natural of the number of crimes per 100.000 citizens in the region where the firm is headquartered. Data analysis uses fixed-effect regression. Findings MA increases real earnings management in the region where the firm is headquartered with a higher crime rate while MA will reduce real earnings management in the region where the firm is headquartered with a lower crime rate. Also, real earnings management by higher-ability managers gives a signal of better future profitability in the region where the firm is headquartered with a lower crime rate. Originality/value This research contributes to filling the previous gap of managerial characteristics ability-related on real earnings management by providing regional crime rate as a determinant factor of managers’ ethical behavior. This research is the first one to considers the regional crime rate treatment to the relationship between MA and real earnings management especially in Indonesia. This research also provides new evidence of efficient real earnings management for a lower crime rate group of samples to give a signal of better future profitability.

scholarly journals KUALITAS AUDIT SEBAGAI PEMODERASI PENGARUH MANAJEMEN LABA TERHADAP NILAI PERUSAHAAN

2020 ◽  
Vol 3 (2) ◽  
pp. 174-190
Author(s):  
I Putu Edi Darmawan
Keyword(s):  
Earnings Management ◽  
Firm Value ◽  
Audit Quality ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Discretionary Accruals ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
Negative Effect ◽  
The Impact

This study aims to test and analyze the impact of accrual earnings management and real earnings management on firm value empirically. Also, audit quality's role on the effect of accrual earnings management and total earnings management on firm value. The analytical method used is Moderated Regression Analysis (MRA). This research's population is manufacturing companies listed on the Indonesia Stock Exchange during the period 2013 to 2017. The sampling technique used is purposive sampling. This study found that accrual earnings management, which is proxied by discretionary accruals, positively affects firm value. Real earnings management has a negative effect on firm value. Audit quality cannot weaken the effect of accrual earnings management on firm value. However, audit quality weakens the effect of real earnings management on firm value.

scholarly journals Pengaruh Independensi dan Keahlian Komite Audit Terhadap Manajemen Laba Riil dengan Kualitas Audit Sebagai Variabel Moderasi

2021 ◽  
Vol 2 (4) ◽  
pp. 345-358
Author(s):  
Ditta Dwi Astuti ◽  
◽  
Lidya Primta Surbakti ◽  
Aniek Wijayanti ◽  
◽  
...  
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Secondary Data ◽  
Production Costs ◽  
Real Earnings Management ◽  
Annual Reports ◽  
Panel Data Regression ◽  
Negative Effect

Abstract Purpose: This study aimed to analyze the influence of the audit committee's independence and expertise on real earnings management by using audit quality as the moderating variable and firm size, leverage, and profitability as control variables. Research Methodology: Real earnings management was processed by Roychowdhury’s model and it used the abnormal value of operating cash flow, discretionary expenses, and production costs. This study used secondary data from annual reports of non-financial companies listed on the Indonesia Stock Exchange for the period 2017-2019 and the total was 516 companies. This study used panel data regression and was processed by Stata. Results: This study proves that audit committee independence and leverage have a significant negative effect on real earnings management through discretionary expenses and audit quality cannot moderate the relationship between audit committee independence and audit committee expertise on real earnings management. Limitation: The study used audit quality as moderating variable. However, the results cannot prove that audit quality is able to affect real earnings management. Contribution: The results obtained can be used for investors' and creditors' consideration when making investment or loans decisions and can be references for further research.

scholarly journals The Relationship between Real Earnings Management and Cost Behavior

2019 ◽  
Vol 2 (6) ◽  
pp. 65-77
Author(s):  
Bismark Yiadom Boakye ◽  
Francis Atiso ◽  
Elvis Koranteng
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Study Data ◽  
Real Earnings Management ◽  
Doing Business ◽  
Cost Behavior ◽  
Regulatory Bodies ◽  
The Cost ◽  
Ghana Stock Exchange ◽  
The Relationship

Purpose- This research aims to examine the relationship between real earnings management (REM) and sticky Selling General and Administrative (SG&A) costs in the case of a developing economy. Design/Methodology- The study employed a purposive sampling method. Fifteen firms listed on Ghana stock exchange were selected for the study. Data from the period of 2005 to 20014 were collected. Findings- The study finds Ghanaian listed firm's SG&A cost to be sticky and also see these firms to manipulate earnings through REM. This study finds that REM through discretionary expenses and production cost increases sticky SG&A cost, whereas REM through cash flow reduces sticky SG&A cost. Overall, the results imply that REM exhibit sticky cost. Practical Implications- The study informs managers that cost is not only fixed or variable but also behaves asymmetrically. The understanding of this concept could help managers to implement strategies that will lower the cost of doing business. Also, since some managers deliberately make decisions that lead to real earnings management and sticky cost, we, therefore, believe that this research will be of importance to regulatory bodies, policymakers, investors, and other stakeholders.

scholarly journals THE EFFECT OF CORPORATE GOVERNANCE TO REAL EARNINGS MANAGEMENT WITH AUDIT QUALITY AS A MODERATING VARIABLE EMPIRICAL STUDY ON COMPANIES LISTED IN INDONESIA STOCK EXCHANGE

2017 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
M. Anwar Masruri ◽  
Vinola Herawaty
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Quality ◽  
Stock Exchange ◽  
Sample Selection ◽  
Real Earnings Management ◽  
Company Size ◽  
Variable Model ◽  
Negative Effect ◽  
Positive Effect

<p><em>This research is conducted in the period 2013 to 2015 and the selected sample with purposive sampling method using criteria that have been determined. Samples are selected for companies that present the required data in this study. A total of 75 sample companies that have criteria based on this sample selection method. The method of analysis applied in this research is quantitative method and statistical analysis used is multiple regression analysis.</em><em></em></p><p><em>The result of the research shows that CG variable has significant negative effect on REM_Index model, Audit Quality variable strengthen negative correlation between Corporate Governance and Real Earnings Management significantly, Audit Quality and Company Size negatively affect REM_Index model on Abn_CFO model, Audit Quality variable proved to influence Abn_CFO. Abn_DisEx variable model of Corporate Governance proved negatively significant to Abnormal Discreationary Expenses and Abn_Prod Models Moderation and Company Size Model has a significant positive effect on Abnormal Production Cost.</em><em></em></p>

scholarly journals The role of corporate governance in the relationships of family company with real earnings management

2018 ◽  
Vol 22 (1) ◽  
Author(s):  
Indah Masri
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Family Firms ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
Performance Impact ◽  
The Family ◽  
Negative Effect

The purpose of this research was to determine the effect of family ownership on real earnings management with corporate governance as a moderation variable in this relationship. This research is also looking at the role of accrual earnings management as a substitute in the relationship accrual earnings management with real earnings management in a family company. This study uses data 61 manufacturing companies on the Indonesia Stock Exchange in the period 2010 to 2013. The research results according to which hypothesized that family firms tend to negatively affect with real earnings management. The role of corporate governance as strengthening internal oversight negative effect on family companies with real earnings management. The results also proved the existence of a relationship of substitution for family firms tend to be doing accrual earnings management than real earnings management. This is because on the one hand the motivation of control as a strong incentive to do accrual earnings management in the family company, while on the other hand, the family companies tend to dislike real earnings management for their negative performance impact.

Sign in / Sign up

Export Citation Format

Share Document